BNP Paribas Exane Initiates Coverage on Nebius Group (NASDAQ:NBIS)

Key Points

• BNP Paribas Exane initiated coverage on Nebius Group with a neutral rating and a $255 price target, which implies about 3.6% downside from the prior close.
• Despite the cautious rating, Nebius Group shares were up 14.5% on Tuesday, trading at $264.51 near its 52-week high of $274.80.
• The company recently beat earnings expectations, reporting -$0.23 EPS versus estimates of -$0.77, while revenue jumped 684% year over year to $399 million.

Analysts at BNP Paribas Exane assumed coverage on shares of Nebius Group (NASDAQ:NBIS - Get Free Report) in a note issued to investors on Tuesday,Benzinga reports. The firm set a "neutral" rating and a $255.00 price target on the stock. BNP Paribas Exane's price target points to a potential downside of 3.60% from the stock's previous close.

Other equities research analysts also recently issued research reports about the stock. Wall Street Zen raised shares of Nebius Group from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 16th. Cantor Fitzgerald assumed coverage on shares of Nebius Group in a research note on Thursday, April 9th. They issued an "overweight" rating and a $129.00 target price for the company. Wolfe Research assumed coverage on shares of Nebius Group in a research note on Thursday, April 16th. They issued a "peer perform" rating for the company. Bank of America upped their target price on shares of Nebius Group from $175.00 to $205.00 and gave the company a "buy" rating in a research note on Monday, May 11th. Finally, Citigroup upped their target price on shares of Nebius Group from $169.00 to $287.00 and gave the company a "buy" rating in a research note on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $188.31.

Nebius Group Trading Up 14.5%

NBIS opened at $264.51 on Tuesday. The company has a debt-to-equity ratio of 1.16, a current ratio of 8.33 and a quick ratio of 8.33. The company has a market cap of $66.93 billion, a price-to-earnings ratio of 85.33 and a beta of 4.03. The firm has a 50 day simple moving average of $161.71 and a 200 day simple moving average of $118.68. Nebius Group has a fifty-two week low of $34.72 and a fifty-two week high of $274.80.

Nebius Group (NASDAQ:NBIS - Get Free Report) last posted its quarterly earnings results on Thursday, May 14th. The company reported ($0.23) earnings per share for the quarter, topping analysts' consensus estimates of ($0.77) by $0.54. Nebius Group had a net margin of 95.27% and a negative return on equity of 9.11%. The business had revenue of $399.00 million during the quarter, compared to the consensus estimate of $375.13 million. The firm's revenue for the quarter was up 684.0% on a year-over-year basis. On average, sell-side analysts anticipate that Nebius Group will post -2.35 earnings per share for the current year.

Insider Buying and Selling at Nebius Group

In related news, insider Andrey Korolenko sold 500,000 shares of the company's stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $203.24, for a total transaction of $101,620,000.00. Following the sale, the insider owned 585,209 shares in the company, valued at approximately $118,937,877.16. This represents a 46.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CRO Marc Boroditsky sold 4,500 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $217.55, for a total value of $978,975.00. Following the completion of the transaction, the executive owned 37,662 shares of the company's stock, valued at approximately $8,193,368.10. This represents a 10.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 666,935 shares of company stock valued at $123,541,848 over the last quarter.

Institutional Trading of Nebius Group

A number of large investors have recently added to or reduced their stakes in the company. Vestor Capital LLC lifted its stake in Nebius Group by 456.5% in the first quarter. Vestor Capital LLC now owns 51,066 shares of the company's stock valued at $5,299,000 after acquiring an additional 41,890 shares during the last quarter. SOA Wealth Advisors LLC. lifted its stake in shares of Nebius Group by 50.0% during the 1st quarter. SOA Wealth Advisors LLC. now owns 750 shares of the company's stock worth $78,000 after buying an additional 250 shares during the last quarter. Western Wealth Management LLC acquired a new stake in shares of Nebius Group during the 1st quarter worth about $293,000. Rovida Investment Management Ltd lifted its stake in shares of Nebius Group by 3.6% during the 1st quarter. Rovida Investment Management Ltd now owns 1,893,647 shares of the company's stock worth $196,333,000 after buying an additional 65,000 shares during the last quarter. Finally, Silicon Valley Capital Partners lifted its stake in shares of Nebius Group by 400.0% during the 1st quarter. Silicon Valley Capital Partners now owns 1,250 shares of the company's stock worth $130,000 after buying an additional 1,000 shares during the last quarter. Institutional investors and hedge funds own 21.90% of the company's stock.

About Nebius Group

Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company's services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability.

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